Towry Trading Procedures

Charity_Dalek

I traded some Unit Trusts from my portfolio that are held by Towry/EJ (only for as long as it takes me to get them out – currently 20 weeks andcounting).

The instruction to sell happened at approx 9.30am on the 7th Sept. When the Contact Notices came through they were dated the 8th. I have asked Towry for an explanation and am currently awaiting their reply. However, I would have expected that trade to have taken place on the 7th and I would have be given the midday price of that day.

The Unit Trust is CIF Global Equity Fund if this makes any difference., http://www.capitalinternationalfunds.com/servlet/ContentServer?pagename=cif/europe/inv/page&assetName=EEU_InvFifCIFGEFHstPrcs

Could anyone advise on what is correct.

Regards

Robert

sunil1234

Charity_Dalek wrote: »

I traded some Unit Trusts from my portfolio that are held by Towry/EJ (only for as long as it takes me to get them out – currently 20 weeks andcounting).

The instruction to sell happened at approx 9.30am on the 7th Sept. When the Contact Notices came through they were dated the 8th. I have asked Towry for an explanation and am currently awaiting their reply. However, I would have expected that trade to have taken place on the 7th and I would have be given the midday price of that day.

The Unit Trust is CIF Global Equity Fund if this makes any difference., http://www.capitalinternationalfunds.com/servlet/ContentServer?pagename=cif/europe/inv/page&assetName=EEU_InvFifCIFGEFHstPrcs

Could anyone advise on what is correct.

Regards

Robert

usually sold on a forward pricing basis meaning the nav is determined at the next vaulation point (either same day or next working day). Did they not explain this when you placed the deal to sell?. Have the prices moved against you so much from the 7th to 8th?

thanks

Charity_Dalek

No they didn't. They just gave me the estimated fund value based on the previous days price.

The next day price was slightly worse, but not by a huge amount. It just with Towry, nothing goes smoothly.

Loughton_Monkey

I assume you checked the prices. With the provider I deal with, they accept instructions up to 10:00 am that day, which they say will "normally" be traded that day. However, I see nothing wrong in them having physically traded on the 8th at, say, 11:00 a.m. provided the price was the one calculated as at mid-day re-valuation on the 7th. If they physically did the trade on the 8th (at prices declared on the 7th) then their contract note would have to be accurate.

sunil1234

Charity_Dalek wrote: »

No they didn't. They just gave me the estimated fund value based on the previous days price.

The next day price was slightly worse, but not by a huge amount. It just with Towry, nothing goes smoothly.

yes they can give u an estimate but they should have told you

1) the estimate will change as its forward dealing
2) the certainty is only the number of units being sold at a market price to be determined in the future.

whilst they havent done anything dodgy, it is just a shame that they didnt advise you of the forward pricing. It should be in the paperwork but reiterated on the phone call.

Maybe if you complain on such basis they can credit you the difference between the two days prices if youre losing sleep over it.

Perhaps time to change broker?

S

Charity_Dalek

[QUOTE=LoWith_the_provider_I_deal_with,_they_accept_instructions_up_to_10:00_am_that_day,_which_they_say_will_"normally"_be_traded_that_day.[/QUOTE]

So it sounds like I need to know what Towry's procedures are for the cut-off point. I have asked Towry, but will have to wait days for a reply.

Anyone know what teh cut-off time is?